Azernews.Az

By Alimat Aliyeva

Kyrgyzstan plans to issue sovereign bonds worth $1.7 billion in Hong Kong for the first time, Azernews reports.

In an interview with the Chinese newspaper China Daily, the Minister of Finance of Kyrgyzstan revealed that the estimated maturity for the bonds is about 10 years.

"We view the international capital market as an important and promising source of financing for our country. This will be Kyrgyzstan's first entry into the international market. We are currently working on improving our sovereign ratings and collaborating closely with consultants and banks," said Minister Sydykov.

He also highlighted that several informational events, including roadshows, were held, some of which took place in Hong Kong.

"We consider Hong Kong not only as the traditional financial center of the Asian region but also as a significant global player," the minister stressed.

Sovereign bonds are debt securities issued by governments to raise funds, and they can be denominated in either foreign currency or the national currency. Currently, Kyrgyzstan issues bonds that are mainly purchased by domestic investors.

Bonds, along with loans, contribute to the national debt of any country. The decision to tap the Hong Kong market signifies Kyrgyzstan's growing ambitions to diversify its sources of financing and strengthen its position in the global financial arena. The move is expected to attract international investors, boosting the country's economic prospects.